- An above-forecast Australian jobs data has put a bid under the AUD.
- Employment Change for July blew past expectations with full-time jobs ticking higher.
- The upside in the AUD could be capped by the recession fears.
AUD/USD jumped from 0.6756 to 0.6786 immediately after the Australian Bureau of Statistics (ABS) reported better-than-expected jobs data at 01:30 GMT.
The Australian economy added 41.1K jobs in July, beating the expected jobs growth of 14.0K by a big margin. The previous month's figure was left unrevised at 0.5K.
More importantly, full-time jobs rose by 34.5K in July following a 21.1K rise in June and the unemployment rate held at a 10-month high of 5.2% in July.
The above-forecast Employment Change and the Fulltime Employment data could keep markets from bolstering the already dovish Reserve Bank of Australia (RBA) expectations.
The AUD, therefore, may extend gains during the day ahead. As of writing, it is trading at 0.6773.
The upside could be capped by the US recession fears triggered by the treasury yield curve's first inversion in over a decade. In the light of these developments, the markets are unlikely to price out the probability of the RBA cutting rates in September and November. The central bank reduced rates by 25 basis points in June and July.
- R3 0.6867
- R2 0.6838
- R1 0.6793
- PP 0.6764
- S1 0.6719
- S2 0.669
- S3 0.6645
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